Trade Union (Recognition, Collective Bargaining) and Trade Dispute | Labour and Industrial Law - CLAT PG PDF Download

Definition of Trade Union

According to Section 2(h) of the Trade Union Act, a "Trade Union" is defined as any combination, whether temporary or permanent, formed primarily to regulate the relations between workmen and employers, workmen and workmen, or employers and employers. It can also include a federation of two or more Trade Unions.

Important Elements of Trade Union

• There must be a combination of workmen and employers.
• There must be a trade or business involved.
• The main objective of the Union should be to regulate the relations between employers and employees or to impose restrictive conditions on the conduct of any trade or business.

Case Studies

• Rangaswami V. S Registrar of Trade Unions: In this case, the Supreme Court rejected the application for registration of a trade union at the Raj Bhavan, stating that the services rendered by the employees were of a personal nature and not part of a trade or business. The Court emphasized that the definition of a trade union involves the existence of an employer and employee engaged in a trade or business.
• Tamil Nadu NGO Union v. Registrar, Trade Unions: The Tamil Nadu NGO Union, representing sub magistrates and tahsildars, was not considered a trade union because these officials were engaged in sovereign functions of the State.
• GTRTCS and Officer's Association, Bangalore v. Asst. Labor Commissioner: In this case, the definition of workmen for trade unions was found to be broader than in other acts, focusing more on the purpose of the association rather than the type of workers involved.

Definition of Trade Dispute

• A "trade dispute" refers to any disagreement between employers and workmen, workmen and workmen, or employers and employers, related to employment or non-employment, terms of employment, or labor conditions of any person.
• "Workmen" includes all individuals employed in trade or industry, regardless of whether they are in the employment of the specific employer involved in the trade dispute.

Recognition of Trade Union

• The Trade Unions Act, 1926 does not have a clear provision for recognizing trade unions, making it the employer's discretion.
• Although the Trade Union (Amendment) Act, 1947 included recognition provisions, it was never implemented.
• The Trade Union Bill, 1950 also aimed to establish recognition criteria based on membership but lapsed due to parliamentary dissolution.
  

Recognition of Central Trade Unions

• The Central Government recognizes a trade union as a Central Trade Union for representation in International Labour Organizations and conferences if it meets certain criteria.
• Membership: The union must have a minimum of five lakhs members as of March 1997.
• Geographical Spread: Members must be from at least four states.
• Industry Representation: Membership must be spread across at least four industries.
• The Central Chief Labour Commissioner is responsible for verifying these conditions.

Collective Bargaining

Definition: Collective bargaining refers to the negotiation process between employers and workers (often through a labor union) to agree on various aspects of employment, such as working conditions, wages, and other benefits.Introduced by Beatrice Webb in 1897 in her book "Industrial Democracy."

Advantages

• Obligation and Conduct: Collective bargaining creates a binding agreement for both parties, ensuring a specific code of conduct during negotiations.
• Industrial Harmony: By committing to avoid strikes or lock-outs, it helps maintain peace and harmony in industrial relations.

Disadvantages

• Increased Costs: Higher wages and additional amenities for workers can lead to increased production costs.
• Political Interference: Involvement of political factors in labor unions during negotiations can have negative consequences.